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Energy Bill Moves to the House of Representatives......
The automotive industry including AutoNation is supporting HR 2927, which has been introduced by Congressman Baron Hill of Indiana and Congressman Lee Terry of Nebraska. For more information visit: http://www.nada.org/cafe_ _____________________________________________________________________________________ Mike Jackson Chairman and CEO of AutoNation, was named for the 5th time on the list of the Automotive News All Stars, an honor received by few. Let’s look at the contributions that Mr. Jackson and AutoNation have made to the Automotive Industry during the past year. Mike Jackson’s Listing on the Automotive News All Stars List: Mike Jackson CEO, AutoNation Inc. "Jackson, who heads the nation’s largest dealership group, makes the All-Star Team for the fifth time. His assertive public role has expanded the clout of all dealers. Jackson successfully challenged “The Chrysler Group” to cut production when it was pressuring dealers to take cars and trucks they didn’t want. When “he talks”, the Detroit 3 listen. So do Toyota, Honda and Nissan."
June 22nd 2007 The senate last night passed an Energy Bill which was modified from the original proposal. The bill raises fuel efficiency, but was more extreme then we would of liked to have seen. In the baseball analogy this is the "3rd inning" of the game, next stop will be the House of Representatives in September. We were able to at least get the Senate "tone down" its original proposal. More time in Washington is ahead as we work to get a reasonable energy bill passed, ........which will include the appropriate incentives to drive consumer habits.
_____________________________________________________________________ Update........ June 20th 2007 2:00 PM Note: The Senate is currently discussing the energy / CAFE proposals.This article is the first update from the Senate chambers --- we will keep you posted as this current energy legislation progresses. ...................................................... "Reid: Fuel Economy Vote Up in the Air; Immigration Will Wait Until Energy Bill Is Done" By Geof Koss ....CongressNow Staff ........................................................ Senate Majority Leader Harry Reid (D-Nev.) and Sen. John Kerry (D-Mass.) this afternoon said they were unsure of the fate of a mandatory increase for federal fuel economy contained in the Senate energy bill, as Senators seek a last-minute compromise to avoid a standoff on the issue. "We'll find out," Reid said this afternoon. "It's going to be a closevote." The current language in the bill (H.R. 6) mandates a fleetwide increase in corporate average fuel economy standards to 35 miles per gallon by 2020. Sen. Carl Levin (D-Mich.) is expected to offer an amendment that would offer a lower target over a longer period of time. Automakers say the higher standards would be too costly and force them to build less safe vehicles.
Below you will find a link that provides excellent information which is invaluable in understanding the issues involved, and why we cannont fully support the Senate Energy Bill approved in June. The Markey Bill is also under consideration in the House. We wish to ask all, again, to participate and to contact your local congressman. July 10th 2007
Mike Jackson Named to "'Automotive News' 'All Stars'"
“Dealer’s Voice”
Energy Bill moves forward..........
Wednesday, June 20, 2007 1:29 PM
Reid said that numerous Senators are having discussions to see if a deal can be reached. "There are a lot of efforts being made to compromise the issue," he said.
But Kerry, who is involved in the negotiations with Levin, told reporters that it is unclear whether a deal is possible. "It's a moving target," he said. "We need to see the language. There's a biq question mark on whether to close the gap" between the competing proposals.
In the meantime, Reid also said today that he intends to complete the energy bill, pushing aside speculation it could be set aside for the immigration debate, which he said would resume next week. "We won't get to immigration this week," he said. Reid also said there may be an effort by Republicans to defeat cloture on the energy bill. "It would be a real shame for America," he said.
End Article
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June 20th 2007
Washington D.C. – Fuel Economy Amendment..............
Yesterday, Washington D.C. was a buzz. Mr. Jackson AutoNation Chairman and CEO was asked to join other auto industry leaders to help support The Pryor-Bond-Levin Amendment that is before the Senate in regards to Energy and CAFÉ.
Mr. Jackson was asked to visit some key senators who could be the deciding vote this week.
A few high points were Mr. Jackson’s visit with Senator Cardin of Maryland. Mr. Cardin was very familiar with Mr. Jackson and his views on energy. They had a very engaging discussion and found common ground.
Another key visit was with the Senator Tester of Montana, who came off the Senate floor to meet with Mr. Jackson. Mr. Tester is truly undecided and a key vote. The senator is brand new and very engaging, quite honestly he is what Washington needs.
We will see what the Senate does later today.
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June 15th 2007
Major Energy Legislation "At Hand" on Capitol Hill
and Sepcial Editorial by Mr. Mike Jackson CEO and Chairman AutoNation
This week, the U.S. Senate is considering major energy legislation (H.R. 6) that includes aggressive increases in the Corporate Average Fuel Economy requirements for passenger cars and light trucks. The outcome of this debate will have a decisive impact on the overall auto industry, especially U.S. domestic automakers and General Motors in particular. As an automotive retailer, you have a vested interest in ensuring that Congress passes energy legislation that achieves reasonable goals while preserving consumer choice and the livelihood of millions of Americans that depend on our industry.
As part of this process, we expect a spirited debate on the CAFE provisions. During that debate, an amendment will be offered that would moderate the extreme CAFE increases currently in the bill. We urge you to contact your Senators and ask them to support this CAFE alternative.
Currently, H.R. 6 calls for CAFE increases that independent technical experts agree cannot be reasonably achieved. In addition, it would impose the single greatest regulatory cost burden ever on an industry.
The proposed legislation calls for raising the average fuel economy for the combined fleet of cars and light trucks by 40 percent to an average of 35 mpg by 2020 - with 4 percent increases annually after that. The U.S. Department of Transportation's most recent estimates place the cost of such a proposal to the auto industry at $114 billion-of which $85 billion, or three-quarters of the cost, would be shouldered by the domestic automakers. GM's cost alone is estimated to be $40 billion, or more than twice our current market capitalization.
With GM and the other domestic automakers at a critical point in transforming their respective businesses, this proposal poses a very real and serious threat to the domestic auto industry and would result in irreparable economic harm to our employees, dealers, suppliers, and the communities where we operate. Moreover, such extreme CAFE increases would also lead to extensive shifts in vehicle offerings that will adversely affect consumer choice, vehicle safety, and competitiveness among manufacturers.
Make no mistake, GM ,itself, is taking action to address climate change and energy security as an essential part of their long term competitiveness and success. They are pursuing product plans based on advanced technology and renewable fuels that we believe will accomplish what CAFE hasn't in 30 years-to truly displace petroleum and reduce greenhouse gas emissions. GM offers more vehicles capable of using alternative fuels (E85 ethanol), than any other manufacturer. By 2012, half of the vehicles we produce will be E85 capable. In addition, GM offers hybrid technology in the Saturn Vue and Aura and the Chevrolet Malibu. Later this year, they will be adding to that list a strong hybrid version of their large SUVs, the Chevrolet Tahoe and GMC Yukon. In short, AutoNation soon will be providing consumers with the choices and options they demand while continually improving efficiency.
It's important that we work together with government on the right things that can truly make a difference. We believe our approach can be one part of an effective solution to address climate change and energy security. Our company, country, and consumers cannot afford to be diverted from measures that can work in order to meet aggressive and extreme CAFE increases that are not rooted in a sound technical or economic basis.
So, I urge you again to contact your Senators. Tell them that a more realistic alternative to the extreme CAFE increases that are in the current bill will be offered and we hope they will support its adoption.
...The Energy battle on Capitol Hill will begin this week and next..more details to come on how we can all help..read more on Tuesday.
Special Editorial ....................
CAFE Fuel Efficiency Standards “Won’t Work”.....We Need an Energy Policy that "Will" - Here are some ideas..............!
With geopolitics, demand and weather whipping the price of oil and gasoline up and down during the past year, consumers are acutely aware of the direct relationship between our nation's energy security and their economic well-being.
But at a time when our lawmakers should be rethinking U.S. efforts to break Americans' addiction to oil, we have gone from importing just one-third of our oil in 1970 to importing nearly two-thirds now. Sadly, much of that oil is coming from countries that are hostile to our interests.
The only way to break the addiction to oil is to begin the long process of moving away from it. Helping the industry get there sooner, not later, is where Washington must focus.
Despite our precarious situation, the energy debate in Washington is centered on extending the failed policy of corporate average fuel economy. But we needn't repeat the policy failures of the past.
America's automakers, stung by the shifts created by volatile oil prices, are moving to diversify their portfolios away from petroleum. As radical as that sounds, it makes the most business sense.
For example, last November, in a keynote address at the Los Angeles auto show, General Motors CEO Rick Wagoner outlined GM's corporate strategy to diversify its products away from petroleum. He said GM already has more than 2 million E85 vehicles on the road.
Wagoner and the CEOs of GM's domestic competitors have promised that the Detroit 3 will double their production of vehicles capable of running on renewable fuels by 2010.
GM also has said it will produce plug-in hybrids and has revealed plans to pursue production of its E-Flex hybrid system for future battery- and fuel cell-driven vehicles.
CAFE has "failed"
But without a framework for a national energy policy, much of the remaining work on battery development, biofuel and hydrogen infrastructure will be more expensive and take longer than it should.
It's no secret that most automakers - including most Asian and European manufacturers - have not been happy with CAFE because it pits the desires of consumers against those of the manufacturers. Market forces must be the driver of any energy policy.
This has never been more evident than during the recent oil and gasoline price spikes. When the price of gasoline went up, the mix of vehicles sold immediately shifted to include higher-efficiency vehicles. And when pump prices went back down, the mix shifted back.
The bottom line: CAFE has failed to curb our dependence on foreign oil even slightly.
Each incremental mile per gallon is costing more and more money, compelling engineers to work on technologies that essentially keep us wedded to the problem.
What's just as challenging is a labyrinth of regulations for safety, emissions and efficiency that are managed by different government agencies at the state and federal level. More times than not, those uncoordinated regulations are self-defeating.
What we must have!
Auto manufacturers and retailers know that people will buy the vehicles they want, not the vehicles they're presented with. The desire for high-efficiency, low-emissions vehicles must become more than a minority position, and our energy policy is one of the primary ways to influence a shift in consumers' purchase decisions.For starters, a comprehensive U.S. energy policy should promote reduced consumption, improved efficiency, lower emissions, nontraditional fuel sources and more attractive public transportation options.
How best to attain these goals?
* Begin with consumer incentives that encourage higher demand for fuel-efficient vehicles and new technologies.
* Support a results-driven program for the pre-competitive development of emerging technologies.
* Motivate manufacturers with a cap-and-trade policy that caps the amount of carbon dioxide their vehicles can produce and allows those that fail to meet these standards to trade carbon credits with those that do meet them.
* Introduce a graduated, progressive gasoline tax to encourage less wasteful consumption and generate the funding needed to support our national efforts at developing an energy policy for the future.
Americans are increasingly ready for such a program, and that readiness will only increase as gasoline prices remain volatile. They're eager to see America's car companies rise to the challenge, and the companies are actively doing so. How and when will Washington respond?
It's time for political leaders to acknowledge what a growing number of consumers and members of the automotive industry know: Change is needed, and it's needed now.
A bold and comprehensive energy policy will give us a healthier economy, a healthier environment and a more hospitable political climate. Those with the power to enact such a policy must recognize what the future could be with - and without - such a change."
Submitted by: Mike Jackson CEO and Chairman of AutoNation
The Worlds Largest Auto Retailer
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May 31st 2007
TEXAS SUCCESS!
When you talk to Dan Agnew you can understand why Texas is riding high. What a great Team he has in place. Let’s take a moment and look at the “Lone Star State” and a few new team members that Texas has sent to corporate headquarters.
Maura Berney is moving over to the SSC, what a great team leader she is. Maura was an outstanding V.P.of Finance in Texas over the last few years. She has retail and finance experience as well as “just great people skills”. Maura is going to help Jim Murphy and Team to make the SSC even better for AutoNation.
Mike Rossman just joined the corporate team as V.P. of Sales. Mike will be a great partner for Kevin Westfall and his team. Mike previously helped the great state of Texas come through some tough times because he is disciplined and when the economy turned…Mike had his dealerships ready for the upswing in the recovery.
We also now have Tom Calloway, as the new V.P. Fixed Operations. Tom did a great job in Texas as well, we have a great opportunity to grow the fixed operations area and Tom is very focused on "getting the job done".
And finally we have Jose Colmenares, National Recruiting Director, who was the head of Human Resources for the Texas Region. Jose is a great asset and is doing a great job.
We welcome and wish Maura, Mike, Tom & Jose to AutoNation Corporate and all the best, but a few things they should know.
1. BBQ in Florida is not like it is in Texas ---- Texas BBQ’s rules!
2. Cowboy hats and boots will not replace bathing suits and sandals.
3. Martinis and frozen drinks win over beer every time, unless you are Pete Thiel
Thanks to our “Lone Star Team” for continuing to make AutoNation the best automotive retailer in America.
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May 29th, 2007
Summer is Upon Us.............
So the official start of Summer is around the corner. Let’s take a minute to reflect on what that means......
- The kids are getting out of school, camps open, BBQ’s are turned on and most mothers want to pull out their hair on their heads and send the kids back to school.
- Hurricane season is approaching, that means getting the supplies ready and praying that Florida is spared.
- Taking a trip, even with higher gas prices that everyone complains about, more Americans will hit the roads this summer than ever before.
- Lobster season in Maine is cranking up. In fact, more lobsters will leave the state of Maine than will be eaten in Maine this year.
Finally, it is the season to sell cars; the housing market is still difficult and gas prices are high. But hopefully, America will get the urge for some “new wheels.” and visit the AutoNation stores nationwide.
So, enjoy the start of summer!
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May 22nd 2007
AutoNation Officers Meet with General Motors-Chrysler-and Ford
Last week Mike Jackson and Mike Maroone had a chance to visit with The Detroit Big 3 automakers in Michigan. The schedule included visits with Rick Wagoner, CEO of GM, Tom LaSorda, CEO of Chrysler, Derek Kuzak, head of design for Ford, and Bob Lutz, just to name a few. It was also an opportunity for AutoNation to talk with them about the future of the industry and to see the future products coming the AutoNation show rooms in 2009 and beyond.
One could see at every meeting that the “Detroit Big Three” were interested to hear what AutoNation had to say about the US consumer’s choice, economy, and energy. In fact, they even asked AutoNation what they could do to “improve” in the US market. AutoNation’s opinion is relevant and its role as the “voice of consumer” seems even more important than ever to GM, Chrysler, and Ford.
Mike Jackson and Mike Maroone will be talking about the meetings held on this trip to Detroit during the “Corporate Update” to be held on May 24, 2007 in Ft Lauderdale and at the AutoNation Stores during this year’s “Summer Tour.”
Stay tuned…..as each of us will play a role in the success that the “Detroit Big 3” will have in the future.
A Personal Note from Marc Cannon Sr. Vice President of Corporate Communications……….“At Worlds End”
So moving away from autos for just a few moments…let’s look at what the Memorial Day weekend has coming….and yes, it is finally here…..”Pirates of the Caribbean at World’s End.” We get to see Jack Sparrow (Johnny Depp) in his last hurrah.
If you have seen the parts 1&2 you can’t miss the final in the series. So if your not selling a vehicle or sending someone to our showrooms, then take a few moments with your “loved ones” and join Captain Sparrow on his voyage.
By the way the critics panned “Shrek the Third”, our kids loved it, so who cares what critics think anyway.
So........See you at the movies.........and
All the Best for Memorial Day Weekend Honoring Our Fallen Soldiers
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May 14th 2007
AutoNation GMU Students to Graduate………..
GMU, for those of you who don’t know what this stands for, it is “General Manager University” at AutoNation…. And we are pleased to announce that in early June of this year, the first two classes of GMU will graduate.
The reason I bring this up is the fact that AutoNation through newly developed education and training programs, has begun to substantially develop the talent, which we have in our organization, .
Julie Staub, Christa Porter, and Andrea Schliessman have really developed this program that is truly sucessfull. Not just from an educational standpoint, but form a team-building standpoint as well. You watch the General Manager Trainees together, and you see a bonds that have developed among the GMU students. This is great because they are the future leaders of AutoNation.
Brian Freeman of Mike Shad Nissan is a great example. When you talk to Brian, he tells you about the other trainees he has met. All are “outstanding” and he is glad to be associated with them. He calls it “a network…..people you can share ideas with”. So, not only are we developing our future leaders, but also a sense of belonging to the AutoNation community.
So….”Congratulations” to our GMU Graduation Class of June 2007, which is just around the corner and; “welcome to class number three”. As you kick off this Monday May 14, 2007, “work hard and learn well". You are the "future.”
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May 10th 2007
Recognizing the Good...........
Today Barret Robbins, General Manager for AutoWay Honda called. He received a call from ABC Action News in Tampa. Barret picked up the phone and called me, he went through the deal and we discussed the situation, called the TV station and moved on.
What was great, was not just Barret’s response to wanting to resolve the issue, but how timely he was in getting it resolved and keeping the customer happy. Another example: last weekend Bobby Yoxall, General Manager from AutoWay Toyota called about a tragic accident that happened in front of his store. We talked about it, spoke with the media, Bobby’s team handled the customer who saw the accident well. The next day, Channel 10, called me and proceeded to tell me how professional the team at AutoWay Toyota was.
Last week, Danny Sanguily, General Manager of Maroone Dodge got a call from me about a customer on the phone whose Caliber car would not start . Danny didn’t tell the customer, let me get someone to get back to you, he went right to work…asked the customer his name, his location, his phone number, and then told him we would have someone there in 30 minutes or less….customer called the next day very pleased with the quick response of Maroone Dodge.
What I noticed is that people talk about some of the bad experiences customers have with car dealerships; well let me tell you there are good ones as well. And I think it’s time we should recognize when our associates go the extra mile. If everyone handled situations like Barry, Bobby and Danny we would go from GOOD to GREAT overnight!
Finally hats off to Jim Bender, President of the Florida Region, and all the folks in that region. Every time you talk to them it is "customer first" and even better when their customers have an issue, they get it fixed in the same day.
So keep fixen them and let’s start talking about the successes we do have. Let’s spread the good karma!
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May 8th 2007
BREAKING OIL ADDICTION TAKES BOLD POLICIES
By Mike Jackson Chairman and CEO for AutoNation the world's largest auto retailer.
With geopolitical demand and weather factors whipping prices up and down over the past year, consumers are acutely aware of the direct relationship between our nation's energy security and their economic well being.
Yet when we should be radically rethinking policies to break our "addiction to oil," our policies have allowed us to go from importing just one-third of our oil to more than two-thirds. Sadly, much of it is coming from countries hostile to our interests. Despite the precarious situation, the debate in Washington is yet again centered on extending the same failed policy of Corporate Average Fuel Economy (CAFE) standards. But we needn't repeat the policy failures of the past.
America's automakers, stung by the shifts in oil prices, are already moving ahead to diversify away from petroleum. As radical as this sounds, it makes the most business sense. The only way to break the addiction to oil is to begin the long process of moving away from it. Helping the industry get there must be Washington's focus.
The majority of the auto industry, including most in Asia and Europe, has not been happy with CAFE because it tries to pit the desires of consumers against manufacturers. Market forces must be the driver of any energy policy.
This was never more evident than during the recent oil and gas spikes, when prices at the pump dramatically shifted consumer behavior. When the price of gas went up, the mix of vehicles sold shifted to higher efficiency vehicles. When prices retreated, the mix shifted back.
CAFE has failed to even slightly curb our dependence on foreign oil because it tries to defy the laws of both physics and economics. Meanwhile, the low-hanging fruit in getting more out of internal combustion engines for efficiency is gone. Each mile per gallon is costing more money, stretching engineering resources for technologies that essentially keep us wedded to the problem.
Auto manufacturers and retailers know the public will buy vehicles they want, not the ones they're offered. The desire for high-efficiency, low-emission vehicles must become more than a minority position, and our energy policy is one of the primary ways to influence a shift in consumers' purchase decisions.
We've seen this in the European market, where cars get upwards of 60 miles per gallon and get an average of 30 percent better mileage than cars in America. This is because the tax policies are coordinated for all aspects -- fuel providers, consumers and manufacturers. There are both incentives and disincentives among all three to drive consumers to more efficient technologies while still growing and strengthening the economic base that transportation provides.
A similar system has been called a “non-starter” in America due to voter backlashes against such taxes, but what else is possible? For starters, a truly comprehensive energy policy should promote reduced consumption, improved efficiency, cleaner emissions, non-traditional fuel sources and more attractive public transit options. This includes consumer incentives for adoption of fuel-efficient vehicles, new technologies and a big push on pre-competitive research for emerging technologies.
I firmly believe Americans want to see American car companies rise to this challenge, and they are. The question is, how and when will Washington respond?
It's time for political leaders to acknowledge what many in and out of the industry already know: Change is needed -- now. By enacting a bold, comprehensive energy policy, we can create a healthier economy, a healthier environment and a more hospitable political climate, but only if those in power recognize what the future could be with -- and without -- such a change.
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May 2nd, 2007
May 1st Auto Sales and a Difficult Retail Auto Market
As U.S. auto sales numbers came in today, it’s hard not to notice that a tough retail environment called out by Mike Jackson, CEO of AutoNation, has come true. Even Toyota today reported a decline in sales of 4.4%. But, when you adjust for two fewer selling days, they were up around 3.7% nothing compared to past months. The big OEM’s are pointing to housing issues like George Pipas at Ford and Brad Brandston at Nissan
“It just seems to us that these housing issues… along with higher gas prices seem to have frozen everybody” – Brad Brandston– Nissan U.S. Sales Chief.
Here again, AutoNation had called this out in August of 2006. In fact, last week, Earl Hesterberg from Group 1 mentioned California as a “weak market” for new vehicle sales. Finally, today more and more people in the auto industry are talking about finishing the year with new vehicles sales close to 16.2 million units a drop from last year. It seems that the challenging environment is underway
“Housing” nationwide, and “California’s” competitive new vehicle market, are a very challenging. This seems to be the message. This all seems to be the discussion taking place today as April auto sales numbers come in. By the way I think I have heard all of this before. Mike Jackson of AutoNation has been talking about this for the last nine months.
So, with all this going on we have to continue to see customer-focused initiative in the retail sector. AutoNation’s Smart Choice, a new tool in the AutoNation arsenal for improving sale efficiencies, is paying off with associate productivity and customers’ “ease of purchase”. AutoNation’s E-Vehicles (Energy Efficient Vehicle Identification Program) is just another customer focused information tool and is arriving at a great time, especially with rising gas prices.
Let’s all hold on, 2007 is going to be one heck of a ride in auto retail. Expect to hear the words…”challenging”…”California”…..and “housing” over and over again.
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April 29th 2007
AutoNation CEO Sees Evolution of Energy-Efficient Vehicles as Important Step Forward
You’ve decided you’re ready to buy a new car. Now the question is what should you get?
With the price of gas already pretty steep and little hope of dramatic price decreases, you begin to think of looking at some of the more fuel-efficient alternatives. After all, you’d also be doing your part to help the environment and perhaps trim your gas bill.
But how do you know if an energy-efficient vehicle is right for you? And if it is, how do you know what kind of alternative best fits your driving and lifestyle? Should you wait for prices to come down, or is now a good time to buy?
Mike Jackson, chairman and CEO of AutoNation, the country’s largest automotive retailer, says consumers can learn about all of the alternatives with visits to a variety of Web sites including, www.fueleconomy.gov, which is run by the federal government, and his company’s site www.autonation.com
Jackson, who has been an outspoken supporter of new energy technologies, believes it is imperative for the country to reduce its dependence on foreign oil and sees a transition to fuel-efficient vehicles as a major part of the solution.
“Clearly, America’s dependency on foreign oil is a matter of national security,” Jackson says. “Everybody has to do their part.”
To further shine a spotlight on the issue, Jackson and AutoNation launched a new E-Vehicle program earlier this month that promotes greater awareness of energy-efficient vehicles by identifying them with a green, leaf-shaped E-Vehicle logo. To be considered E-Vehicles, cars, trucks and SUVs need to get at least 28 miles per gallon or deliver 10 percent better fuel efficiency than the average vehicle in its class.
As part of the program, done in partnership with automotive web site Edmunds.com, AutoNation will continue to list fuel mileage information for individual vehicles on its Web site and will also display E-Vehicles prominently in the showroom.
In addition, AutoNation, with more than 325 new-car franchises in 16 states, will be identifying cars that use alternative or flex fuels such as ethanol, with a yellow, leaf-shaped F-Vehicle logo.
One of the goals of the program, AutoNation says, is to help educate consumers and eliminate confusion.
“We’ve done a lot of homework for the consumer on this issue,” he said.
Another goal, of course, is to increase the number of fuel-efficient vehicles on the road.